Office tower sold for $87 million

Chinese property developer and investment group Zone Q Investments has added a CBD office tower to its growing Perth portfolio, buying Westralia Plaza for $87 million.

The deal is part of an asset sell-off by the Insurance Commission of Western Australia, which began last year.

Along with Westralia Plaza, ICWA sold Forrest Centre to YT International Pty Ltd in February, while it also sold two shopping centres, The Shops At Ellenbrook and Livingston Marketplace in Canning Vale, in November last year, to national shopping centres giant Vicinity Centres.

Collectively, the sales total just less than $600 million, exceeding valuations, ICWA chief executive Rod Whithear said.

“We are pleased with these sale results and the progress made the rebalance the Insurance Commission’s investment portfolio and implement the investment strategy we agreed to 18 months ago,” Mr Whithear said.

The only asset remaining for sale in ICWA’s portfolio is Westralia Square, at 141 St Georges Terrace, while the Westralia Plaza deal marks Zone Q Investment’s first acquisition of an existing building in Perth.

Zone Q Investments, which is the Australian subsidiary of Chinese development giant JiaHe JianAn Group, launched its first Perth project, the $100 million Pinnacle currently under construction in South Perth, in late 2014.

Once complete, Pinnacle will comprise 102 apartments and a seven-level office tower.

Marketing is also under way for another Zone Q residential project, a 22-level apartment tower known as Nspire108 located on Beaufort Street in Northbridge.